New York Markets After Hours

Asian shares move higher, buoyed by U.S. data

GregorStuart Hunter

Stocks rallied across Asia on Wednesday, tracking gains in U.S. shares after consumer confidence in the world’s largest economy rose to an over six-year high. However, traders say the gains could be fleeting as the focus turns to local factors.

The Australian S&P/ASX 200 increased 0.8% to 5,383.70, tracking the S&P 500, which rose 0.4% to 1,865.62 after the release of the Conference Board’s consumer confidence index for March. The reading of 82.3 was the highest since January 2008.

Reuters

Japan’s Nikkei 225 opened 0.9% higher before paring gains. It was last trading 0.1% higher at 14,450.65 as the dollar bought ¥102.33. Traders say sentiment is fragile ahead of the end of the quarter and a hike in consumption tax due next week.

Hong Kong stocks opened higher tracking the gains across Asia, after a selloff yesterday on fears of mounting problems in corporate credit markets. The Hang Seng Index opened 1% higher at 21,952.26.

“Once the initial trading is over, expect the market to drift lower,” said Kim Eng, adding the rise above 21,900 could limit further gains.

The Hang Seng China Enterprises Index leapt 1.7% to 9,859.31, with Chinese banks leading stocks higher after Agricultural Bank of China posted earnings in line with estimates, reassuring investors about levels of bad debts in the financial system. Bank of China also reports earnings today.

South Korea’s Kospi increased 0.8% to 1,957.89 as expectations rise of measures to accelerate growth, while investors are untroubled by reports that North Korea fired two midrange ballistic missiles into the sea early on Wednesday morning.

A recent downward revision of Korea’s growth forecast has prompted expectations of policy easing: “At this point supply-side measures of the kind included in President Park’s 474 Plan are the best hope for reversing the slowdown in real GDP growth. We think faster spending growth would make it easier to implement such reforms,” says ING.

U.S.-listed Chinese firms rose overnight on hopes the Chinese government will take measures to counteract deteriorating economic data.

However, the People’s Bank of China is unlikely to shift to a dovish policy stance, but rather a “less hawkish” one, said Brian Coulton, London-based emerging markets strategist at Legal & General Investment Management.

“I still think the government has a strong incentive and the resources, for a while, to avoid a major acceleration in the amount of debt that defaults,” he said. “That doesn’t mean there won’t be quite a few going forward, and I think we will see a few more, but I think these will be contained.”

Intraday Data provided by SIX Financial Information and subject to terms of use.
Historical and current end-of-day data provided by SIX Financial Information. Intraday data
delayed per exchange requirements. S&P/Dow Jones Indices (SM) from Dow Jones & Company, Inc.
All quotes are in local exchange time. Real time last sale data provided by NASDAQ. More
information on NASDAQ traded symbols and their current financial status. Intraday
data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. S&P/Dow Jones Indices (SM)
from Dow Jones & Company, Inc. SEHK intraday data is provided by SIX Financial Information and is
at least 60-minutes delayed. All quotes are in local exchange time.